NBSS(SH:600884)2019-04-24 16:00Financial Performance - The net profit for 2018 was CNY 705,418,183.11, with a total distributable profit of CNY 2,005,187,507.01 after accounting for reserves and dividends[4]. - The company's operating revenue for 2018 was approximately RMB 8.85 billion, an increase of 7.05% compared to RMB 8.27 billion in 2017[17]. - Net profit attributable to shareholders for 2018 reached approximately RMB 1.12 billion, representing a significant increase of 24.46% from RMB 896 million in 2017[17]. - Basic earnings per share for 2018 were RMB 0.993, up 24.46% from RMB 0.798 in 2017[18]. - The company's total assets at the end of 2018 were approximately RMB 23.45 billion, an increase of 6.23% from RMB 22.07 billion at the end of 2017[17]. - The net cash flow from operating activities for 2018 was approximately RMB 540 million, a turnaround from a negative cash flow of RMB 381 million in 2017[17]. - The company reported a total of RMB 812 million in non-recurring gains for 2018, compared to RMB 454 million in 2017[21]. - The company's net profit attributable to shareholders was -45.23 million yuan, with a loss increase mainly due to accelerated depreciation of the old lithium hexafluorophosphate equipment and goodwill impairment[64]. - The energy management service business generated main business revenue of 707.92 million yuan, down 16.61% year-on-year, while net profit attributable to shareholders was 32.08 million yuan, up 2.66%[69]. - The company's photovoltaic business saw main business revenue of 704.68 million yuan, a decrease of 16.71% year-on-year, while net profit attributable to shareholders was 61.08 million yuan, an increase of 16.11%[70]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.80 per 10 shares, amounting to a total dividend payout of CNY 89,821,198.88[4]. - The company proposed a cash dividend of 0.80 RMB per 10 shares for the year 2018, amounting to a total of 89,821,198.88 RMB, which represents 8.05% of the net profit attributable to ordinary shareholders[169]. - The cumulative cash dividends from 2015 to 2017 amounted to 255,429,034.32 RMB, exceeding 30% of the average distributable profit for the same period[168]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends of 0.60 RMB and 0.80 RMB per 10 shares in 2017 and 2016, respectively[169]. - The company’s cash dividend for 2018 is subject to approval at the annual shareholders' meeting[170]. Business Strategy and Market Position - The lithium battery materials business is the core business and main source of revenue for the company, focusing on the R&D, production, and sales of lithium-ion battery materials[23][24]. - The company plans to expand its market presence in the electric vehicle sector, particularly through its lithium battery materials, which are essential for high-energy density applications[24][25]. - The company has adjusted its business strategy in the new energy vehicle sector, focusing on charging pile construction and operation while scaling back on vehicle design and development[34]. - The company aims to enhance its supply chain by developing alternative suppliers and optimizing procurement strategies to control costs[27]. - The company is leveraging a comprehensive intelligent service platform to provide integrated solutions for charging infrastructure[34]. - The company aims to enhance market share by optimizing production capacity and strengthening partnerships with quality customers in the lithium battery materials sector[134]. - The company plans to increase R&D investment to master core lithium battery material technologies and accelerate product innovation[134]. - The company is focusing on strategic collaborations within the lithium battery materials supply chain to stabilize customer relationships and reduce raw material costs[134]. Research and Development - The company invested a total of 37,484.40 million RMB in research and development in 2018, focusing on lithium-ion battery materials[52]. - The company’s R&D teams have filed a total of 67 patents for cathode materials, 86 for anode materials, and 50 for electrolytes, showcasing its commitment to innovation[54][55]. - The company has developed and mass-produced high-voltage lithium cobalt oxide products (4.45V and 4.48V) for consumer electronics, and high-nickel single crystal ternary materials for power batteries[88]. - The company has initiated a new production capacity of 10,000 tons of electrolyte, which began trial production at the end of March 2019[136]. - The company is committed to enhancing its research and development capabilities by attracting top talent and improving employee satisfaction to boost technical competitiveness[137]. Investment and Financial Management - The company raised 2 billion yuan through strategic investors to enhance capital strength for business expansion[61]. - The company acquired a 30% stake in Suinong Holdings for RMB 936 million to strategically enter the non-performing asset sector[75]. - The company has authorized to use up to RMB 2 billion for external investments, with RMB 900 million allocated to a trust plan for investment in Luoyang Molybdenum[120]. - The company has completed the acquisition of a 30% stake in Suinong Holdings in December 2018, with a commitment to guarantee and compensate for the asset value for three years[173]. - The company’s investment strategy includes expanding into new energy and photovoltaic sectors, reflecting a focus on sustainable energy solutions[110]. Risks and Challenges - The company has detailed potential risks in its report, particularly in the section discussing future developments and risks[6]. - The company anticipates a risk of structural and phase capacity surplus if future market demand does not meet expectations, and will focus on technological innovation and product upgrades to enhance competitiveness[148]. - The company faces significant risks from raw material price fluctuations, with major materials including lithium carbonate and cobalt oxide, which constitute a large portion of production costs[149]. - The company is closely monitoring the development of the new energy vehicle market, which may experience slower growth due to subsidy reductions in 2019[151]. - The company aims to reduce reliance on government subsidies by vertically integrating the new energy industry chain and innovating business models[152]. Market Trends and Projections - Global sales of new energy vehicles exceeded 2 million units, with a penetration rate of 2.1% in 2018, and domestic sales reached 1.256 million units, with a penetration rate of 4.4%[30]. - The installed capacity of lithium batteries reached 57 GWh in 2018, a year-on-year increase of 58%[32]. - The market share of lithium iron phosphate (LFP) battery technology in China's battery storage market reached 83%[42]. - The cumulative installed capacity of energy storage projects in China reached 31.2 GW by the end of 2018, a year-on-year increase of 8%[42]. - The company expects significant cost reductions in lithium batteries due to increased production capacity and technological advancements[157]. Corporate Governance and Compliance - The company has no non-operating fund occupation by controlling shareholders or related parties[5]. - There are no violations of decision-making procedures regarding external guarantees[6]. - The company has engaged Lixin Certified Public Accountants for a standard unqualified audit report[3]. - The company has not experienced any significant litigation or arbitration matters during the reporting period[180]. - The company has not faced any risks of suspension or termination of listing during the reporting period[180].